The negative personal savings rate

U.S. December Personal Spending Rises 0.7%; Incomes Rise 0.5%

Excerpt:

Because the increase in spending was more than the gain in incomes, the savings rate worsened to minus 1.2 percent, from minus 1 percent the prior month. A negative rate suggests consumers are dipping into savings to maintain spending.

``Households can't keep spending more than their income indefinitely,'' said Bill Hampel, chief economist at the Credit Union National Association in Washington. The more the savings rate falls, ``the more headwind it creates for consumer spending in the future,'' Hampel said.


Negative Personal Savings Rate - three commentaries:

John Merrill, investment manager

Joel Naroff, economist

Tony Proctor, certified financial planner

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Proverbs 30:25, "The ants are a people not strong, yet they prepare their food in the summer"

Proverbs 6:6-8,

"Go to the ant, you sluggard!
Consider her ways and be wise,

Which, having no captain,
Overseer or ruler,

Provides her supplies in the summer,
And gathers her food in the harvest"